Moritz v. Fisher

6 Pa. D. & C.2d 25, 1955 Pa. Dist. & Cnty. Dec. LEXIS 457
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedJuly 25, 1955
Docketno. 1
StatusPublished

This text of 6 Pa. D. & C.2d 25 (Moritz v. Fisher) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moritz v. Fisher, 6 Pa. D. & C.2d 25, 1955 Pa. Dist. & Cnty. Dec. LEXIS 457 (Pa. Super. Ct. 1955).

Opinion

Braham, P. J.,

This is an action in equity brought by plaintiff, Daniel A. Moritz, against defendants, Flora E. Fisher, Carmen D’Ambrosia and United States Steel Corporation to enjoin them from interfering with his rights as the owner of an oil lease on Fisher’s lands. There are three leases on the Fisher lands: A limestone lease now held by United States Steel Corporation, an oil lease now owned by plaintiff, a lease for the stripping of coal owned by D’Ambrosia. Mrs. Fisher filed an answer denying interference with plaintiff’s rights and alleging by way of counterclaim that she was entitled to terminate and did terminate plaintiff’s oil lease. The United States Steel Corporation filed an answer denying that it was interfering with plaintiff’s rights as did D’Ambrosia.

After a full hearing I make the findings of fact, conclusions of law and decree nisi, and for the reasons hereinafter stated.

Findings of Fact

1. Plaintiff is Daniel A. Moritz, a resident of Mc-Keesport, Allegheny County; defendants are Flora E. Fisher, of North Beaver Township, Lawrence County, Carmen D’Ambrosia, of Mahoning Township, Lawrence County, and United States Steel Corporation, a New Jersey Corporation.

2. On March 15, 1928, Florence A. Baird and John S. Baird, being the owners of the farm of 80 acres in Mahoning Township, Lawrence County, which is the subject of this action, leased to the G. W. Johnson Limestone Co., predecessor in title of U. S. Steel Corporation, the limestone on said lands. The lease is recorded in Lawrence County in Deed Book vol. 267, page 112.

[27]*273. On June 6, 1930, the Bairds and G. W. Johnson Limestone Co. entered into a supplemental agreement whereby it was provided that the Bairds might also lease the lands for oil. The agreement is recorded in Deed Book vol. 274, page 414 and appears as exhibit 1 attached to the complaint. A material portion of the agreement is as follows:

“The Bairds further agree that when, in the opinion of the Limestone Company, its operations have progressed to the point where further operations might prove hazardous due to the proximity of a well or wells which are operating or have not been abandoned, they, the said John S. Baird and Florence A. Baird, will, within sixty (60) days after the date of receiving written notice concerning the aforesaid, protect and plug such aforesaid well or wells in the same manner as provided herein for protecting and plugging abandoned wells and if the said John S. Baird and Florence A. Baird fail or neglect to protect and plug a well or wells, as aforesaid, within the time provided, then the limestone company may do so at the expense of the said John S. Baird and Florence A. Baird.”

4. On or about July 28, 1930, the Bairds entered into an oil lease of the said lands with William Hedegore. A copy of the lease is attached to the complaint as plaintiff’s exhibit 2. The lease granted Hedegore the oil and gas under the lands and the exclusive right to remove them. The habendum clause was as follows:

“To HAVE and to hold unto and for the use of said party of the second part for the term of twenty (20) years from the date hereof, and as much longer as the royalty for each producing well is not less than one half barrel per month, yielding to the said parties of the first part the one-eighth part of all the oil produced and saved from the premises delivered free of expense into tanks or pipe lines, to the credit of the said party of the first part, and should a well be found producing [28]*28gas only, then the said parties of the first part shall be paid for each such well at the rate of One Hundred ($100.00) Dollars for each year, so long as the gas is sold therefrom, payable quarterly, while so marketed, provided, however, that this lease shall become null and void unless operations shall be' commenced on the premises and a well completed, unavoidable delay or accident excepted, within three (3) months from the date hereof, and that five (5) more wells shall be commenced and completed within six (6) months from the date hereof; and the completion of such well, whether producing or not, shall entitle the lessee to make a further test, rent free, at any time during the term of this agreement above mentioned.”

5. Hedegore drilled about 22 wells on the lands. At the time of suit 20 wells remained. They were about 700 feet deep and were pumped by the usual arrangement of power houses, eccentrics, rods and pumping jacks. The oil from all the wells was pumped into a tank. There was no method of measuring the production of any one well. In the early days of the operation Hedegore delivered the oil from the tank into a pipeline whence it was delivered to a refinery. Later he had to deliver it to the refinery by truck.

6. Contemporaneously with the operation of the Fisher lease Hedegore also operated other leases on nearby farms, known as the Hoffmaster and McCord leases. The oil from the two wells on the Hoffmaster lease and from a Fisher well on other property was run into the Fisher tank with no method of determining which well actually produced the oil. The oil from four McCord wells was commingled when it was delivered for sale. In making settlement all the wells were considered as of equal value although the contrary was known to be the fact. It was possible to determine the number of barrels of oil in the Fisher tank by measuring the depth of the oil.

[29]*297. In 1942 a life estate in the lands became vested in Florence E. Fisher.

8. Hedegore was accustomed to make payment of the one-eighth royalty due the Bairds and later due Mrs. Fisher, monthly by check. He accompanied the check with a statement of the oil produced during the preceding month. To determine the royalty due them Hedegore averaged the Fisher, Hoffmaster and McCord production.

9. The production of oil fell off materially. The year 1945 was the last year when the wells produced sufficient oil to allow a royalty payment of at least one half barrel of oil from each well monthly. In 1948 the lease was in bad condition, and the wells and equipment were run down. The production dropped until they produced only enough to require less than one third of a barrel of oil royalty for each month. This condition continued thereafter. Modern techniques for reviving the wells by pumping under pressure were too expensive to be practicable.

10. Beginning about 1948, Mrs. Fisher had an arrangement with D’Ambrosia for the mining of coal from her lands. The current renewal of this lease was dated February, 1950. It provided that D’Ambrosia should mine coal by the stripping method, keeping ahead of the quarrying operations of the Steel Corporation.

11. Noth withstanding his failure to produce the minimum of oil required by the lease, Hedegore continued to report to Mrs. Fisher a production of the minimum amount of oil. This practice continued both before and after the end of the 20-year period fixed by the lease.

12. No agreement for an alteration or extension of the existing lease was entered into between Mrs. Fisher and Hedegore.

[30]*3013. From September 30, 1950 to September 29, 1951, Hedegore paid to Mrs. Fisher and she received and cashed 10 checks for royalty based on approximately the minimum production required by the lease.

14. In the spring of 1951, Mrs.

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Bluebook (online)
6 Pa. D. & C.2d 25, 1955 Pa. Dist. & Cnty. Dec. LEXIS 457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moritz-v-fisher-pactcompllawren-1955.